QUANTITATIVE ANALYSIS OF TECHNOLOGICAL DEVELOPMENT

1. QUANTITATIVE ANALYSIS OF TECHNOLOGICAL DEVELOPMENT Indicators of technological progress

2. Technological progress • Technological progress is a process that leads to: • creation of new or improved methods of production that provide savings, • introduction of new and improved products and services, • improvement of organization and production management. • Technological progress can be observed globally and /or partially.

3. Technological progress • At company level we consider 10 basic components of technological progress: • product • equipment, • materials, • energy, • R & D, • investment, • human resources, • environmental protection, • organization • management.

4. Global productivity Bp- gross production Tr- labor costs Tos- costs of fixed and working assets Product

5. Global productivity

6. Technical equipment per employee Vos- Value of fixed assets N- Number of employees. Equipment

7. Technical equipment per employee

8. Factor of technological level of equipment P- net product Z- number of employees Po- the average annual fees for employees K- invested funds k- interest that would be received on borrowed funds Q- production increase, as a result of improved capacity utilization Equipment

9. Factor of technological level of equipment

10. Electricity consumption per employee Pe- overall electricity consumption N - number of employees Energy

11. Electricity consumption per employee

12. Indicator of R & D ratio of income and expenses for R&D P - total income TIR total costs for R&D activities R & D

13. Indicator of R & D

14. Intensity of investments IS- overall investments N- total number of employees Investments

15. Intensity of investments

16. Level of qualifications and qualification structure n- number of employees at appropriate level of expertise N- total number of employees Human resources

17. Qualification structure

18. Qualification structure

19. Qualification structure

20. Production function • Production function is a model that shows a maximum level of output that could be achieved with specific input • Global production function • Particular production function

21. Cobb-Douglas • Cobb-Douglas form of production function is widely used to represent the relationship of an output to inputs Q=ALα Kβ • Q - total production (the monetary value of all goods produced in a year) • L – labor input - labor production factor • K – capital input - capital production factor • A – factor in proportion to production growth and depended on technological progress • α – elasticity of production volume in relation to labor production factor • β - elasticity of production volume in relation to capital production factor

22. Rate of technological progress • A = emt • e – constant • t – time • m – rate of technological progress • Q= emtLα Kβ • lnQ = mt + αlnL + βlnK • ΔQ/Q = m + αΔL/L + β ΔK/K • m = ΔQ/Q - αΔL/L - β ΔK/K

23. Exercise

24. Exercise • Ratio of factor L to production growth • Ratio of factor K to production growth • Ratio of factor m to production growth